Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.</li>
<li>The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.</li>
<li>We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.</li>
</ul>


After the market close on 20 May, Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics.
The tender offer price is 3,000 won, which is 22% higher than the close price on 20 May. The tender offer period is from 21 May to 10 June.
We have a positive view of this tender offer. Hansol Logistics trades at EV/EBITDA of 1.8x, P/E of 3.7x, and P/B of 0.6x based on 2023 figures.


Hansol Holdings Announces a Tender Offer of 18.53% Stake in Hansol Logistics

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Hanwha Galleria’s tender offer, led by Kim Dong-sun, closed today with a subscription rate just over 80%, according to the local brokerage after market close.</li>
<li>Retail investors in small caps like Hanwha Galleria often skip tender offers, hoping for price gains. Kim Dong-sun may try to buy the remaining 10-15% soon, possibly via open-market buys.</li>
<li>Watch for signs that Kim Dong-sun might go for a second tender to take Galleria private. He might be aiming to avoid taxes and boost his stake’s value.</li>
</ul>


Hanwha Galleria’s tender offer, led by Kim Dong-sun, closed today with a subscription rate just over 80%, according to the local brokerage after market close.
Retail investors in small caps like Hanwha Galleria often skip tender offers, hoping for price gains. Kim Dong-sun may try to buy the remaining 10-15% soon, possibly via open-market buys.
Watch for signs that Kim Dong-sun might go for a second tender to take Galleria private. He might be aiming to avoid taxes and boost his stake’s value.


Hanwha Galleria Tender Results Are in with No Proration Issue Despite a Fat Spread. What’s Next?

<ul>
<li>The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.</li>
<li>For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.</li>
<li>Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.</li>
</ul>


The Hanwha Galleria tender offer has no cancellation risk but carries proration risk, keeping the spread at around 7%.
For Hanwha Galleria, most floating shares are held by retail investors, and the smaller float size compared to Hansol Logistics further reduces proration risk.
Even though the actual trading volume might be a concern, it’s still worth thinking about going for an aggressive strategy to take advantage of the spread, which is around 7%.


Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Murakami-San now owns far more in <a href="https://www.smartkarma.com/entities/mitsui-matsushima-co-ltd" target="_blank" data-smartkarma-citation="entities:13569:1" rel="noopener">Mitsui Matsushima (1518 JP)</a> than he can easily get out of other than by corporate action. Murakami-san is not a dumb guy. He knows this.</li>
<li>The unique investigative shareholder register confirms what has been long rumoured about a certain shareholder activist in <a href="https://www.smartkarma.com/entities/l-occitane-international-sa" target="_blank" data-smartkarma-citation="entities:6772:1" rel="noopener">L'Occitane (973 HK)</a>. It is also informative for what isn't present.</li>
<li>
<a href="https://www.smartkarma.com/entities/prosus-nv" target="_blank" data-smartkarma-citation="entities:28104:1" rel="noopener">Prosus (PRX NA)</a>'s discount to NAV and implied stub widened after Fabricio Bloisi's CEO appointment the previous week. But the sell-down of <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent (700 HK)</a> to buy-back Prosus will continue.</li>
</ul>


Murakami-San now owns far more in Mitsui Matsushima (1518 JP) than he can easily get out of other than by corporate action. Murakami-san is not a dumb guy. He knows this.
The unique investigative shareholder register confirms what has been long rumoured about a certain shareholder activist in L'Occitane (973 HK). It is also informative for what isn't present.

Prosus (PRX NA)'s discount to NAV and implied stub widened after Fabricio Bloisi's CEO appointment the previous week. But the sell-down of Tencent (700 HK) to buy-back Prosus will continue.


Last Week in Event SPACE: Mitsui Matsushima, L'Occitane, Prosus/Tencent, EOFlow

This post is a summary of Hansol Technics's ₩52bil rights offer. Capital increases by 45.23%. Stockholders get new shares at a 0.37353 to 1 ratio. This is a standby underwriting. There is no cancellation risk. More details on this event are as follows.

This post is a summary of Hansol Technics's ₩52bil rights offer. Capital increases by 45.23%. Stockholders get new shares at a 0.37353 to 1 ratio. This is a standby underwriting. There is no cancellation risk. More details on this event are as follows.

South Korea

Hansol Logistics Co., Ltd. provides domestic and international logistic services including loading and unloading, storing, and forwarding services. The Company also operates an Internet-based shopping mall.

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Hansol Logistics (009180 KS)

Hansol Holdings Announces a Tender Offer of 18.53% Stake in Hansol Logistics

Hansol Holdings announced that it is pursuing a tender offer for an additional 18.53% stake in its affiliate Hansol Logistics. The tender offer...

Douglas Kim

Hanwha Galleria Tender Results Are in with No Proration Issue Despite a Fat Spread. What’s Next?

This post just updates on the Hanwha Galleria tender offer subscription results that have come through the local market and explores upcoming...

Sanghyun Park

Examining the Severity of Proration Risk in the Hanwha Galleria Tender Offer

This post explores the proration risk in the Hanwha Galleria tender offer, where the spread remains attractively high at around 7%.

Sanghyun Park

Last Week in Event SPACE: Mitsui Matsushima, L'Occitane, Prosus/Tencent, EOFlow

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Hansol Technics Rights Offer Summary

This post is a summary of Hansol Technics's ₩52bil rights offer. Capital increases by 45.23%. Stockholders get new shares at a 0.37353 to 1 ratio....

Sanghyun Park

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